New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-03-10
THE OPTION NOT YET TAKEN
PROGRESS OF THE GARRETT DEAL.
FAVORABLE SHAPE OF THE GREAT RAILROAD AND
TELEGRAPH NEGOTIATIONS AFFECTING
BAITINOPE Avn 0UIO

cal tallsts, was not exercised yesterday. 1t ii
probable that the privilege will be used withir
few days. and If the terms for subscription by
the syndicate can be arranged, the change Of
ownership may be officially announced to-day
II Is understood that the contract with President
Garrett provides for the transfer by him to the
syndicate Of $4,000 shares of Baltimore and Ohio
| stock at 200. The amount of the purchase money
is therefore $4,000, 900, of which Mr.. Garrett
insists upon the payment In cash
of s6,000,O0O. The remaining &10,.
O0O,O0O may be paid at any time within one
year. but until the final payment has been made
the entire block Of stock is to be held in trust
under certain conditions which have not been
made public. Nothing in these terms is likely to
interfere with the accomplishment Of the general
purpose, but in the meantime persons acknowl-
edged to be largely interested in the plan are
disposed to withhold information in regard to the
details or the arrangement. The syndicate COM
pIises Calvin S. Brice and General Samuel Thomas.
Of the East Tennessee; George s. Scott, formerly
president Of the Richmond and Danvillc George
r. Baker and Fl. G. Fahncstock president and
vicep epresident OF the First National Bank and
their associates In Southern railroad enterprises.
In addition 10 Mr. Sully and Austin Corbin
There are many surmses, Of course, as to the
other interests involved in the transaction, but
In the absence OF positive action the known mem
bers OF the syndicates declined to make public
the names Of their associates or the extent Of the
ramiicat ms involved in the radical change Of the
ownership and management OF one OF the Oldest
and most conservative railroad companies in the
country. Mr. Sully repeated his assertion, pub
ished in THE TRIBUNE yesterday, that he was
not prepared TO say anything when in fact any
statement might be premature. He again fixed
to-day as the time when he might be at liberty.
by the success Of the scheme, 10 make an official
announcement. Georle f. Baker said that there
was nothing to add TO the account published In
THE TRIBUNE until the arrangements had been
completed. Other well-known members OF the
syndicate declined TO furnish particulars in re-
gard to the transfer although they admitted that
the success of the plan was practically assured.
NO ACTION BY THE RICHMOND COMPANY
A meeting Of the executive committee OF the
Richmond and West Point Terminal Company was
held in the afternoon, at which there was full
attendance. All of those present were reluctant
to speak OF tho results afterward, except to say
that action was taken The committee ad-
journed until this morning. The sub cct under
consideration was the question Of haimonZlng or
anna gamating the interests Of this property with
the Baltimore aud Ohio, based on the control OF
the lattcr's stock by q friendly syndicate 1t is
increase In the obligations OF the Terminal Com
pany TO provide the necessary cash TO accept Mr..
Uarrctts option. the rumor being that collateral
trust bond was contemplated for the purpose.
Alfred Sully was in IA non-communcativc mood
In tho afternoon. A TRIBUNE reporter saw him
when the Richmond Terminal executive committee
had adjourned. and In response to inquiries re-
gaIding THE TRIDuNE's account OF the ncgo-
tiations he said. with good deal of hesitation
yes, that was an interesting story. / gdess IL
was pretty well founded on facts. But do not
think that the situation is quite as broad as you
represent IL. Nothing has yet been done, and
do not care to talk until tomorrow
"What about the relations OF the Adams Ex-
press Company as involved in the negotiations =
Mr.. Sully deliberated for some seconds while
his lips were well pursed up, and then he said
slowly: 81 do not think that any question has
been under discussion except the control Of the
Bait imorc and Ohio
4 member Of one Of the Stock Exchange firms
prominently connected with the Reading and
Jersey Central interests said: Il am not con-
versant with al the details Of the negotiations
and do not believe any here is, for the qucs-
tions involved laryc that no one can know
all that is going on But have little doubt that
the scheme outlined will 20 through. for IL
is so obviously 10 the advantage of the important
railroad and telegraph interests affected that their
MANAGERS cannot afford TO disregard this attempt
Ia secure harmony | DO not know oil who are the
members OF the proposed syndicate and L cannot
say what Mr. Gould's relations are, but L feel
assured that he has been committed To pohcy
which promises solution Of the past controv erses
In telegraph matters. The project aims at such
reconciliation Of interests that 1t must be inaly
successful
EFFECT on THE TELEGRAPH COMPANIES
The inevitable conclusion from the change OF
ownership is a settlement OF the long and tedious
warfare between the telegraph companies. Inc
Baltimore and Ohio has presented the most FOR
midable rivalry to the Western Union Telegraph
Company. The railroad company absolutely owned
the telegraph company, and It's high credit pre-
vented any suggestion that the system would
fall into the hands OF the Western Union by any
failure to earn money. This rivalry, In word.
was unusual and IN some respects intangible
Efforts DO bring the companies into harmony
were unavailing on this account
DIR. Norvin Green, president of tho Western
Union Telegraph Company. remarked yesterday
IL know nothing whatever about tho reported
sale Of the Baltimore and Ohio Railroad, but 10
say that the differences between the telegraph COM
panies will be adjusted Is merely the proposition
that history repeats itself. question or terms
alone has prevented q settlement for long time.
We have been willing to take In the opposition
companies on the basis Of their actual value as
material for our business, but the other companies
have based their claims on the amount OF dam
age they could innict upon us We are not buying
opposition lines on that principle OF course We
know that there is no chance OF buying ble
Baltimore and Ohio Telegraph system Mt sheriifs
sale, but, tho other hand, we do not care DO
acquire it at tho valuation put on 1t as one OF
the assets Of the railroad company L have no
hesitation in saying that overturcs for seule-
ment of telegraph matters have been MADE
to us recently. bub they have been refused on
account of the wide differences of opinion In regard
A.. 4l.a unl.1a Of Iho nroncIf LOG offered to US l